Thursday, August 13, 2020

Baht slides as foreign holders sell currency amid worries about weakness

Jul 03. 2020
Facebook Twitter


The baht opened at 31.11 to the US dollar on Friday morning (July 3), weakening from Thursday’s close of 31.09.

The Thai currency is expected to move between 31.02 and 31.22 on Friday, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.

On Thursday night, the financial markets in the US rose after economic numbers in its labour market pointed to a partial economic recovery.

The S&P 500 increased by 0.5 per cent, while Euro Stoxx 600 recovered by 2 per cent due to investors expecting the European Central Bank (ECB) to be supported by the German and French governments.

The US nonfarm payroll increased by 4.8 million positions, lowering the unemployment rate to 11.1 per cent from 13.3 per cent last month. Most of the new employment, or 2.08 million positions, was in tourism and recreation industries.

The US Ten-Year Treasury yield stayed at 0.66 per cent, with a hope that the Fed would issue policies to control the yields in the long term. Meanwhile, the German and Italian Ten-Year Treasury yields decreased to minus 0.43 per cent and minus 1.20 per cent, respectively, since investors expected the monetary policies of the ECB to be more relaxed.

In the financial markets, the dollar recovered by 0.1 per cent because of the economic recovery. At the same time, the baht was sold by foreign holders, due to concerns the currency is weakening amid the strengthening of other currencies in Asia.

Facebook Twitter
More in News
Editor’s Picks
Top News